On Oct. 8, the Centers for Medicare & Medicaid Services (CMS) issued a fact sheet announcing amended terms for repayment of amounts received by providers and suppliers under the CMS Accelerated and Advance Payment (AAP) Program. As we described in an earlier bulletin, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) authorized CMS to expand the AAP Program to provide an additional source of liquidity to help keep providers and suppliers going during the COVID-19 public health emergency. 

Under the original expanded AAP, repayment/recoupment of funds was to begin 120 days after receipt of the AAP payment. In the new fact sheet, CMS states that repayment will now be delayed until one year after payment was issued. 

After the first year and for the next 11 months, CMS will automatically recoup 25% of Medicare payments otherwise owed to the provider or supplier. At the end of the 11-month period, recoupment will increase to 50% for the next six months. 

If the total AAP balance is not recouped or otherwise repaid prior to the end of this 29-month period, CMS will require repayment of any outstanding balance, with unpaid amounts accruing interest at a rate of 4%.

The fact sheet provides additional guidance on how providers and suppliers experiencing financial hardship can request an extended repayment schedule. In announcing the fact sheet, CMS notes that CMS will be communicating with each provider and supplier “in the coming weeks” as to the repayment terms and amounts owed for any AAP payments issued. 

Please contact an attorney in Taft’s Health Care and Life Sciences group if you have any questions about the AAP program or the newly announced repayment terms.

Please visit our COVID-19 Toolkit for all of Taft’s updates on the coronavirus.